How do auto parts companies practice internal skills to achieve global operations?

2023-04-30

In recent years, with the rapid growth of the automobile market, the auto parts industry is containing huge market prospects and opportunities. Nowadays, the auto parts industry has maintained a momentum of rapid development, showing the huge investment value of the auto parts industry. Under the great temptation of China's automobile market, multinational auto parts enterprises are scrambling to come to China to invest and cooperate in various ways. The auto parts industry is facing the critical moment of global operation.

Challenges and changes faced by auto parts manufacturers

1. The cost is high and the production process is gradually complicated

While significantly reducing costs, manufacturers must also cope with the increasing complexity of production processes and products, and meet increasingly urgent delivery time requirements, otherwise they will be punished by the OEM or OEMs.

2. Vehicle manufacturers now rely on fewer and fewer parts suppliers.

As the total number of parts suppliers decreases, parts suppliers need to establish closer ties with OEMs and cooperate more closely in the supply chain network to help OEMs achieve their goals of reducing costs, improving quality and shortening time to market.

3. High competition, still need to adapt to changes in customer needs

Today's global automotive market is quite mature. In this challenging environment, parts manufacturers can only maintain their current competitiveness by constantly adapting to changes in customer needs.

4. The continuous shortening of the production cycle of the product.

Component vendors face shrinking product lifecycles and customer expectations for configurability/innovation.

The double pressure of increasing value.

5. Backward internal management and low efficiency

Different from the automobile main engine factory, at present, the awareness of parts suppliers at all levels to establish ERP system is still weak, resulting in the disadvantage of high consumption and low return in the process of enterprise operation.

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